How to buy NSE shares with Bonga Points
By Nairobi Stocks Review
Safaricom customers can now use Bonga Points to buy shares in companies listed on the Nairobi Securities Exchange. Customers accumulate Bonga Points when they use Safaricom products such as airtime for calls or internet bundles. You earn a point for every Ksh10 spent.
Safaricom launched the loyalty programme in 2007. Customers can redeem their points for airtime or phones sold by Safaricom. Moreover, you can use the points to pay for air ticket to fly with Jambojet, settle utility bills or make purchases from certain businesses.
How to buy NSE shares with Bonga Points
Safaricom has partnered with the stock market operator and a number of stockbrokers to facilitate the buying of NSE shares with Bonga Points. Initially, brokers supporting the ability to buy shares with Bonga Points are Kingdom Securities, Suntra Investments, Faida Investment Bank and Sterling Capital.
The others are NCBA Capital, ABC Capital, Sterling Capital, Dyer and Blair Investments, Old Mutual Securities, AIB-AXYS and Francis Drummond. Many of these brokers also support online stock trading, allowing you to buy and sell shares of NSE-listed companies on your phone or laptop. (Read How to choose the best stockbroker for beginners).
How many NSE shares can you buy with Bonga Points?
First, you will need to have a stock trading account to take advantage of the ability to buy shares with Bonga Points. (Read How to open a stock trading account).
The amount of shares you can buy with Bonga Points will depend on the value of the stock you want. Several dozen companies have listed their stocks on the NSE.
For the stock investing programme, five points will convert into Ksh1. Therefore, you will need 50 points to purchase a stock valued at Ksh10 a share.
However, bear in mind that the minimum number of shares you can buy on the NSE is 100 shares. Therefore, if the stock you want is trading for Ksh10 a share, you would need at least 5,000 Bonga Points to complete a transaction.